Suppose you approach a bank for getting loan And the bank-00088

Online Quiz This subjective question is related to the book/course vu bio101 Basic I-Biology. It can also be found in vu bio101 Mid Term Solved Past Paper No. 1.

Question 1: Suppose you approach a bank for getting loan. And the bank offers to lend you Rs.1, 000,000 and you sign a bond paper. The bank asks you to issue a bond in their favor on the following terms required by the bank:
Par Value = Rs 1, 000,000,
Maturity = 3 years
Coupon Rate = 15% p.a,
Security = Machinery
You are required to calculate the cash flow of the bank which you will pay every month as well as the present value of this option.

Answer:

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